UMW

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-11		31-Dec-11		3	30-Sep-11		3,691,437		300,404		14.51		-
19-Aug-11		31-Dec-11		2	30-Jun-11		3,166,475		222,747		11.26		-
25-May-11		31-Dec-11		1	31-Mar-11		3,221,160		259,846		13.07		-
24-Feb-11		31-Dec-10		4	31-Dec-10		3,438,131		123,976		1.62		-

High Low Prices 1 Month 6.950   (08-Nov-11) 6.140   (23-Nov-11) Prices 3 Months 9.000   (02-Sep-11) 6.140   (23-Nov-11) Prices 12 Months 9.000   (02-Sep-11) 6.140   (23-Nov-11) Volume 12 Months 77,812   (11-Jul-11) 1,755   (11-Apr-11)

LTKM

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-11		31-Mar-12		2	30-Sep-11		38,874		-6,729		-15.52		-
25-Aug-11		31-Mar-12		1	30-Jun-11		39,544		2,323		5.37		-
27-May-11		31-Mar-11		4	31-Mar-11		38,905		3,494		8.10		-
26-May-11		31-Mar-11		4	31-Mar-11		38,905		3,494		8.10		-

High Low Prices 1 Month 1.910   (15-Nov-11) 1.760   (17-Oct-11) Prices 3 Months 1.980   (03-Aug-11) 1.630   (30-Sep-11) Prices 12 Months 2.200   (23-May-11) 1.630   (30-Sep-11) Volume 12 Months 3,489   (18-Jan-11) 3   (20-Oct-11)

Genting Berhad

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-11		31-Dec-11		3	30-Sep-11		5,143,899		1,086,511		16.16		-
26-May-11		31-Dec-11		1	31-Mar-11		4,889,158		1,446,050		22.25		-
23-Feb-11		31-Dec-10		4	31-Dec-10		4,086,714		806,175		12.57		-
25-Nov-10		31-Dec-10		3	30-Sep-10		3,909,209		1,222,727		20.72		-

ttm-EPS 71.7 sen
Price  $ 10.28
Trailing PE  14.3 x

High		Low
	Prices 1 Month	11.040	(09-Nov-11)	10.000	(24-Nov-11)
	Prices 3 Months	11.040	(09-Nov-11)	8.370	(26-Sep-11)
	Prices 12 Months	11.980	(14-Jan-11)	8.370	(26-Sep-11)
	Volume 12 Months	183,152	(10-Feb-11)	2,729	(27-Dec-10)

Genting Malaysia Berhad (GENM)

Market Watch

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-11		31-Dec-11		3	30-Sep-11		2,315,836		347,145		6.13		-
25-Aug-11		31-Dec-11		2	30-Jun-11		1,896,025		313,753		5.54		-
26-May-11		31-Dec-11		1	31-Mar-11		1,950,580		417,698		7.37		-
23-Feb-11		31-Dec-10		4	31-Dec-10		1,558,525		362,125		6.39		-

ttm-EPS  25.43 sen

Price $ 3.86

Trailing PE 15.2x

	High   Low Prices 1 Month 3.910   (16-Nov-11) 3.620   (02-Nov-11)   Prices 3 Months 3.910   (16-Nov-11) 3.010   (26-Sep-11) Prices 12 Months 3.930   (07-Jul-11) 3.010   (26-Sep-11) Volume 12 Months 227,765   (31-Mar-11) 6,802   (22-Apr-11)

Coastal

Market Watch

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-11		31-Dec-11		3	30-Sep-11		110,211		36,657		7.59		-
23-Aug-11		31-Dec-11		2	30-Jun-11		233,849		46,611		12.86		-
27-May-11		31-Dec-11		1	31-Mar-11		155,830		56,092		15.48		-
23-Feb-11		31-Dec-10		4	31-Dec-10		203,403		55,663		15.36		-

ttm-EPS 51.29 sen
DPS 9.7 sen
Price $ 1.92
Trailing PE 3.74x
DY 5%

Share Price Performance

	High Low Prices 1 Month 2.040   (15-Nov-11) 1.770   (10-Nov-11) Prices 3 Months 2.130   (07-Sep-11) 1.620   (26-Sep-11) Prices 12 Months 3.820   (25-Apr-11) 1.620   (26-Sep-11) Volume 12 Months 65,994   (05-Apr-11) 330   (01-Dec-10)

Petronas Gas

Market Watch

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-11		31-Dec-11		Other	30-Sep-11		927,324		350,091		17.70		-
17-Aug-11		31-Dec-11		Other	30-Jun-11		916,553		386,724		19.54		-
11-May-11		31-Mar-11		4	31-Mar-11		891,190		266,563		13.48		-
22-Feb-11		31-Mar-11		3	31-Dec-10		892,687		400,719		20.25		-

Share Price Performance
	High   Low Prices 1 Month 13.980   (14-Nov-11) 12.920   (22-Nov-11)   Prices 3 Months 14.680   (15-Sep-11) 12.300   (21-Oct-11) Prices 12 Months 14.680   (15-Sep-11) 10.780   (20-Dec-10) Volume 12 Months 129,177   (31-May-11) 879   (01-Aug-11)

ttm-EPS 70.79 sen
Price $ 13.26
Trailing PE 18.7 x

Stock fundamental analysis is a key component in any trading plan.

Stock Fundamental Analysis - A Key Component for Success

When it comes to investing in the stock market, one measurement stands out above the rest; how much did the investor earn at the bottom line. Traders use many tools to help determine their stock trading plan, but the best tool for assisting an investor is basic stock fundamental analysis. Stock fundamental analysis is the process of examining businesses at the most essential levels. This method of review evaluates key risk reward ratios of a business to attempt to determine the stability and financial health of a company and to determine the value of its stock. 

Many investors use stock fundamental analysis alone for their determination of future stock purchases. While stock fundamental analysis is a powerful practice, it should be an important part of an investor’s overall stock trading plan. This plan should include stop loss strategies, as well as a stock trading system such as Japanese Candlesticks. Such a trading system, coupled with basic fundamental analysis can provide the trader with a valuable insight into the murky waters of the stock market.

Basic fundamental analysis helps an investor to know how much money a company earns. This is the ultimate measurement of its success, both currently and in the future. Earnings can be difficult to calculate, but that is to be expected when dealing with the stock market. When a company is growing and profitable, its stock generally increases; earnings create higher stock prices and in some cases, regular dividends and successful trading. Lower stock value can have the opposite effect, making the market bearish on the stock. By evaluating a stock with stock fundamental analysis, it is possible to look for basic candlestick chart formations and determine the direction of a stock. When the direction is known, an investor can implement stock market strategies which reflect either a bullish or bearish approach.

In addition to understanding a company’s earnings, there are a number of ratios involved in basic fundamental analysis that help the investors to evaluate the worth of a company’s stock. These ratios focus on earnings, growth and value in the market. Evaluating these dynamics together can provide unique reflections on the value of the company. When a company can be identified by basic fundamental analysis, its stock can be tracked using candlestick chart analysis. With this information, an investor can move confidently to make a trade. 

Stock fundamental analysis is a key component in any trading plan.

Investments and Risk Reward Ratio

It is always interesting that there are so many different types of investments around us, ranging from regulated investments such as bonds and stocks, all the way to unregulated investment vehicles such as collectibles, antiques and many others. In this post, I’m slightly more inclined to talk about some common investments, mainly money markets, bonds, stocks and derivatives as well as their risk-reward relationships. To illustrate this, let’s start with a picture.

I do hope that the picture is pretty clearcut. Basically, it says that the higher the return, the higher the risk. Note that in the picture, derivatives has lower return, but higher risk and I will explain why it is so in the picture. I am actually taking into account expected rewards, which is different from potential rewards. Potential rewards mean the high end spectrum of what is achievable, whereas expected rewards basically mean the aggregate returns of all investors who participate in the investing of the instrument.

Now, after having explained my definition, let’s look at the investments and their risk rewards ratio. It is seen from the diagram that for taking more risk, the expected rewards is greater, with the exception of derivatives. The explanation is that derivatives are theoretically zero sum games, which means that when someone makes money, another has to lose it. After commissions, spreads and other charges, they are practically negative sum games.

I have friends who said that stock markets are negative sum games too, because the same principle applies. 

However, they missed an important point, which is the fact that wealth is created through the stock market and the evidence is in the issuance of dividends. For example, I bought a stock at $10 and sell it for $9.50. I may seem to have lost money, but what if I got a dividend payout of $1.00 while holding the stock? From this example, we can see that the purchase of stocks is not a zero sum game and that the general direction of the stock market in the long run is an uptrend. Of course, I am assuming that there is no large scale war or natural disaster that will destroy a significant amount of wealth. Even if there is though, wealth will be recreated as long as humans survived.

Just like stocks, bonds and money markets are also both not zero sum games, since there is an effective yield that you can get. While some of them may default their payments, we are looking at the aggregate of all investments in the instrument, which makes it a positive sum game.

For derivatives though, it is a clear cut zero sum game, because there is absolutely no payouts linked to the instrument. You don’t get dividends for holding options or futures. However, I would like to argue from another standpoint that perhaps it is not really that much of a zero sum game. The reason I would like to input this perspective is the prevalence of people who like to hedge their investments. Therefore, they may have holdings of stocks and buying options to offset the downside. Hedging in such a way often gives them an effective yield almost equilvalent to the risk-free rate. Therefore, they may not care if their derivative products lose money, since their overall portfolio gives them the desired return that they want.

This seems to get quite complicated, but I am suggesting that if there are really quite a number of hedgers out there in the financial world, it is possible that they are all holding the derivatives that lose money. Consequently, this may mean that it may be slightly easier to profit from derivatives than a strict zero sum game, since some people participate in the game without the intention of winning. Of course, if we aggregate all the positions, we are still back to a strict zero sum game. 

However, my purpose in this post is only to bring about another perspective that perhaps not everybody wants to make money from every market. Some people may participate in some markets and lose constantly but still persist because they satisfy them in some other way. Therefore, it may mean that for those who are serious about making money in the markets, the chances are slightly higher. After all, it is easier to win in a race against leisure runners than national runners who are committed to getting that next medal.

Of course, with everything said, it’s just my hypothesis and it may or may not be right. 

http://www.firstmillionchallenge.com/investments-and-risk-reward-ratio/

So what exactly are the risks and rewards to investing in penny stocks?

Penny Stocks

So you’re ready to learn how to trade penny stocks?  You want us to teach you where to find the best stock picks?  Before we get to that, you must first understand what a penny stock actually is.

There is a lot more to penny stocks than just their definition.  A penny stock is any stock under $5.  Often they are under $1.  However that doesn’t really explain what they really are, and how they are different from the stocks you hear about in the news.

Penny stocks are high risk, high reward stocks that can jump double or even triple digit percentage gains in months, weeks, or even a single day. With a conventional large stock, an increase of twenty percent a year is considered a great return.

When dealing with penny stocks, something as small as becoming noticed by a few large investors could be enough to send double or triple its value.

Large cap stocks provide a false sense of security. It is a common misnomer that huge companies are always safe investments. Just look at Bank of America during the financial crisis, Caterpillar when the housing market crumbled, AIG, Fannie and Freddie, the list goes on.  Goodbye dear WaMu! All of these companies are multi-billion dollar businesses, with worldwide brand recognition. The point is, no matter how large or celebrated a stock might be, there are no guarantees.

A penny stock provides the chance to take on the market risk that every company embodies, with the possibility of much higher payoffs.

Of course, penny stocks aren’t immune to problems either.  Make no mistake, more penny stocks will “crash” than NYSE or NASDAQ stocks.  They certainly offer greater risk, but the risk to reward ratio can greatly favor investing in a penny stock versus a stock like Ford or Microsoft.

So what exactly are the risks and rewards to investing in penny stocks?

Well, as stated before, the gains can be extraordinary. Why? The simple answer is a lack of liquidity. These penny stocks don’t boast a huge roster of thousands of investors, mostly because they trade on secondary markets (OTC and Pink Sheets). Secondary markets are an alternative to the NYSE and NASDAQ exchanges, where small companies can list for a smaller fee (15K versus 250K) or where larger companies (Nestle, Deutsche Telekom, etc.) can go to avert a lot of the red tape associated with major exchange listings.

Being listed on these secondary markets usually doesn’t allow for analysts to cover these stocks, good, bad, or indifferent. This results in less institutional interest in penny stocks, and thus, limited liquidity.

Once a stock starts to stir up interest though, the result often such a large percentage gain because the amount of buyers and sellers is typically small in comparison to a large cap stock. For example, say someone wants to buy a share of Apple. There are so many sellers and buyers of Apple that the buyer will most likely get to purchase that share at the market price. But for someone who wants to buy a penny stock, there are less sellers. That allows the sellers to set a higher price.  A hot stock will have a lot of buyers, and far less sellers.  A lot of demand, not a lot of supply.

Also, there is a psychological factor that comes into play. Jumping from ten to twenty cents does not seem like that big of a deal, but in percentage terms it’s just as big as a $100 stock shooting to $200. This can result in increased gains, because it is much harder for investors to bid a stock up from $100 than it is from 10 cents.

There are risks to investing in penny stocks, but these can all be managed with the discipline and knowledge on when to buy and sell. Locking in profits on a large spike in price is the one way experienced penny stock traders usually manage the risk. Getting too greedy could result in a loss of any profits.

Even if you don’t sell at the top, setting stop losses will reduce any large hits to your profits. This measure will allow you to automatically sell at a certain price, before it starts to drop too much.  Most experienced penny stock traders will never hold a position without a firm stop loss order in place.

Just remember, they can go down as fast as they went up.

In the end, penny stocks are high risk / high reward endeavors. Gains that NYSE or NASDAQ traded stocks might achieve in a decade could be experienced in days with a penny stock.

How do people find these hot penny stocks? There are literally endless ways to research individual equities, and thousands of stocks to filter through. 

http://pennystockalerts.com/penny-stocks/

The Importance of the Risk to Reward Ratio

Written by Thomas Long 

---

Trader A has a win percentage of 75% on all trades while trader B has a win percentage of closer to 40% on all trades. Which trader is more profitable? Of course we can't answer that as we don't know how much each trader makes when they are right compared to how much they lose when they are wrong. So the win percentage is not the most important factor in trading. I'm sure that we would all like to win most of our trades, but if our goal is to be profitable, then there is more to the equation. It is called the risk:reward ratio and is one of the most important aspects of money management and a key to becoming a consistently profitable trader. Let's take a look at some examples: If you risk 100 pips and look for 300 pips in profit, your risk:reward ratio is 1:3 or one pip of risk for every three pips in potential profit. If you risk 100 pips and look for 200 pips in profit, your risk:reward ratio is 1:2 or one pip of risk for every two pips in potential profit. If you risk 100 pips and look for 100 pips in profit, your risk:reward ratio is 1:1 or one pip of risk for every one pip in potential profit. If you risk 100 pips and look for 50 pips in profit, your risk:reward ratio is 2:1 or two pips of risk for every one pip in potential profit. If you risk 100 pips and look for 25 pips in profit, your risk:reward ratio is 4:1 or four pips of risk for every one pip in potential profit. So forex trader A would not be profitable using a 4:1 risk:reward ratio while maintaining a win percentage of 75%. On the other hand, trader B using a 1:2 risk:reward ratio while maintaining a win percentage of 40% is a profitable trader. I would recommend that new traders use a 1:2 risk:reward ratio in their trading. If you open a trade with a risk of 25 pips, then try to get twice that or 50 pips in profit. I would also recommend moving your protective stop up to breakeven when the market moves halfway to your target. An example of this would be if you bought at 1.2500 and placed your protective stop at 1.2475, your risk is 25 pips. Using a 1:2 risk:reward ratio means placing your limit order to take profits at 1.2550 for a potential gain of 50 pips. When the market moves up halfway to your target which would be the 1.2525 level, you move your protective stop from 1.2475 up to your entry level of 1.2500. At this point, you can only win or break even on the trade. Then you can spend your time looking for the next trading opportunity instead of following the current trade. Thomas Long, FX PowerCourse Instructor FXCM

Risk and Reward Ratios in Trading

Risk and Reward Ratios in Trading
By Matt Kirk

One of the most important aspects of trading is your risk/reward ratio – when I explain this
in my seminars I see a light go on in traders heads immediately. Perhaps it’s such a simple
rule of thumb that people overlook it initially.

This exercise will show you that you don’t have to get it right all the time, in fact you don’t
have to get it right even half the time if you adhere to these guidelines when you trade.

Here are the rules –
1. Your losing trades on average are no more than 5% of your account balance  
2. Your profitable trades on average provide gains of 15% on your account balance

For example – on a $20,000 account the maximum risk is $1000 and the average profit is
$3000 per trade. Your trading system may call for stop losses to be trailed to lock in profit or
reduce the size of a loss. In this case the average loss may be $500 and if so then the
average profit may be $1500 which is still 1:3 risk/reward.

So, your losses on average are one third the size of your profits. Or to put it another way,
your profits on average are 3 times the size of your losses.

Let’s assume you have an account of $20,000 – now watch this…

Read more here: https://www.bsp-capital.com/documents/RiskRewardRatiosinTrading.pdf

Win Rate and Risk Reward Ratio

What systems do many large hedge funds trade?  Many of the hedge funds trade using the low win rate, high risk reward system.  Part of the reason is that they don’t know how to capture the better trades.  But the bigger reason is that they are trading with much bigger positions to the tune of hundreds of millions and billions of dollars, thus the type of trading system that can accommodate such liquidity constraints and still generate a decent amount of signals is the low win rate, high risk reward system.

Frequency of Trades

I have trading systems for all of the above.  They are all highly discretionary but still are systems nonetheless.

You need to realize the frequency of the trades to be expected.

The trading system that fires off the most signals is the:  Low Win Rate, High Risk Reward System.

The trading system that fires off an average amount of signals is the:  High Winrate, Low Risk Reward System

The trading system that fires off the least amount of signals is the:  High Winrate, High Risk Reward System.

It makes sense right?  The system that fires off the most signals is the one with the lowest profit potential.  The system that fires off the average amount of signals is the more profitable trading system.  And finally the system that fires off the least amount of signals is the most profitable one.

I trade the low winrate, high risk reward systems and they keep me occupied and busy while I await for the chance to go for the jugular on the high winrate system trades.  That is my trading philosophy.

http://orderflowforex.com/2011/11/win-rate-and-risk-reward-ratio/

“Top 10 questions a Trading Plan must answer“.

 “Top 10 questions a Trading Plan must answer“. 

A Trading Plan has only one purpose which is to guide the Trader to achieve his goals in Trading and in Life. It must pre-define a course of action to all situations a Trader will encounter. It must contain a system that can be easily followed, otherwise it is likely the trader will eventually not follow it.

Developing your trading plan is an essential process for a trader on his or her road to success, it can be a process which evolves over time as you expand your knowledge and learn about yourself.

Below are all the posts in this series:

1. What are your Life Goals & Trading Goals?
2. What is your Trade Entry Method?
3. What are your Trade Exit Methods?
4. What type of orders will you use to enter & exit?
5. What are your Money Management Techniques ?
6. How will you manage your Position Risk versus Reward?
7. What is your Process for Open Trade Review & finding New Trades Picks?
8. What is your Trading Success Profile?
9. How will you Review your Trading System to measure & improve?
10. What is your Trading Daily Routine-(Part1 & Part 2)?

http://globaltrendtraders.com/trading-plan/top-10-questions-a-trading-plan-must-answer/